Current price action shows that Shiba Inu (SHIB) is currently in a triangular formation whose escape could send him on a strong upward surge. However, as the crypto continues to trade in this triangle pattern, on-chain data shows a strong wall of resistance, which could pose a strong threat to a SHIB price increase in the near term.
According to data from IntoTheBlock, this interesting resistance wall is around an average of the $0.000027 price level, which consists of 149,120 addresses holding 109 trillion SHIB tokens.
A major obstacle for Shiba Inu
After a run to $0.0000287 in late May, Shiba Inu reversed to $0.0000237 in early June and remained stuck in a tight trading range between $0.000023 and $0.000026. Interesting way, ITB data correlates this price level with resistance worth monitoring. This means that there is a huge SHIB sell wall just above $0.000026 that the bulls have been unable to breach.
The sell wall presents massive resistance as many addresses could sell their holdings and block further price increases. Although this sell wall is made up of holders holding maximum and minimum prices of $0.000025 and $0.000030 respectively, the largest price is just below an average price of $0.000027.
For Shiba Inu to break through this sales wall, it needs enormous buying pressure and momentum from Shiba Inu. both whales and retail investors. Fortunately, the token has seen an uptick in whale activity over the past few days, with one whale in particular engulf more than 715 billion SHIB in just a few hours.
SHIB Bulls will continue to push
Shiba Inu has not yet returned to the $0.000030 threshold in the last two months. Despite various accumulations from the bulls, many traders continue to sell since it hit a two-year high in March 2024. However, if Shiba Inu manages to overcome this massive selling wall, its price could go parabolic quite quickly. Despite the impending sell wall, significant support exists at $0.000023, preventing an exceptional decline for SHIB.
At the time of writing, SHIB is trading at $0.00002392 and is down 5.35% in the last 24 hours. As mentioned earlier, the recent price movement resembles that of a triangle formation on the price chart. Currently, SHIB is testing the lower end of the formation and may continue to decline until it reaches the $0.000023 support. A bullish reversal is likely to occur at this point, and the meme coin could trigger a move towards the upper end of the triangle at $0.000028.
For this to happen, the bulls will need to simultaneously breach the sell wall at $0.000027, which would give SHIB a free ride to another key price level at $0.000032.
Featured image from Reddit, chart from TradingView
